Discover why operating cash flow is a more reliable metric than net income for assessing financial health and avoiding accounting manipulation risks.

Positive cash flow is critical to a successful business. Business owners may understand the importance of generating profits; however, focusing on profit alone may lead to the neglect of cash flow.

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Financial statements provide a wealth of information about a company and its operations. Many investors, analysts, and creditors refer to a firm’s net income and operating cash flows to understand how ...

Operating income and revenue both show the money a company makes. However, they have different ways of expressing a company’s earnings. Revenue is a company’s income from its regular business ...